13 July, 2017

The local housing
market showed mixed results for the first semester of this year as Palo
Alto’s median sale price increased 10% with average days on the market of 21
days whileMenlo Park’s median sale price decreased 4.5% with
average days on the market of 25 days and Atherton’s median sale price
decreased 17.5% with average days on the market of 43 days. Demand
from international buyers has slowed somewhat but we are still
seeing multiple offers on many of our listings although the number of
offers has decreased.

Set forth in the
tables below are the median sales prices, sale to list price ratios and price
per square foot for different areas of Palo Alto, Menlo Park and Atherton for
the first half of 2017.

2017 Median Sale
Price In Palo Alto, Menlo Park and Atherton

2017 Sale to List
Price Ratio

2017 Price Per Square Foot for Palo Alto by
Areas

2017 Price Per Square Foot for Menlo Park by Areas

2017 Price Per Square Foot for Atherton by Areas

The townhouse
and condo market was down. The median sale price in Palo Alto for 2017
decreased from to $1,543,000 in 2016 to $1,472,000 in 2017 and the sale to
list ratio was 106.3%. In Menlo Park the median sale price increased
from $1,267,000 in 2016 to $1,312,000 in 2017 and the sale to price ratio was
100.4%.

About
the same number of homes sold during the first half of 2017 as sold
during the first half of 2016. 174 houses sold in Palo Alto
(compared to 170 in 2016), 149 houses sold in Menlo Park (compared to
152 houses in 2016) and 44 houses sold in Atherton (compared to 37
houses in 2015).

The
current market conditions could be described as follow:

1-
Chinese interest in our local real estate market has slowed somewhat
but not in Palo Alto.

2-
There is an abundance of liquidity in the market from IPOs and mergers
and acquisitions.

3-
There is a steady increase in the number of new jobs.

4-
Consumer confidence and spending is strong.

5-
The demand for housing outstrips supply

6-
There is low homeowner turnover due to upgrade.

7-
The improving economy is drawing buyers back to the housing market.

Looking Forward

Here are eight things
housing experts expect to see in the next semester:

Prices
will continue to rise but more slowly in Palo Alto and will remain
more stable in other areas in the Mid- Peninsula.

21 June, 2017

We’re excited to bring you our second annual Bank of America Homebuyer Insights Report, which explores the latest attitudes, behaviors and preferences of the modern homebuyer.If there’s one thing to take away from our report this year, it’s that forward-thinking millennials are buying homes – and they’re happy with their choice. This growing group of millennials is seeing the value of getting into a home. In fact, nearly 80 percent who bought homes report that homeownership has had a positive long-term impact on their financial picture. Clearly, the millennial generation is coming of age and realizing it might not make sense to wait anymore to purchase their first home. While “dreamers” told us last year that they want to skip the starter home in favor of a house that suits their needs over the long term, the overwhelming majority of millennial homeowners say their current home is a “stepping stone” to their forever home. These millennial owners strongly believe owning a home is more affordable than renting. This stands in sharp contrast to those who have not yet purchased a home, who say they are roughly split in their view of whether renting or owning is more affordable.Some prospective first-time homebuyers believe their personal circumstances should line up perfectly before buying a home. Would-be buyers may think they’re not prepared in all the ways they need to be. For example, many first-time buyers in our report believe they need 20 percent or more of a home’s price for a down payment, which may be why just less than a quarter think they can currently make one. For this group, having the proper financial means to purchase is the top reason for buying a first home, ahead of additional factors such as wanting a place to call their own and preferring a mortgage to paying rent. The reality is that, with proper help, homebuyers can very often achieve homeownership in a way that is both sustainable and rewarding. Bank of America offers a variety of tools and resources to help homebuyers navigate the homebuying process and purchase an affordable home. Our Affordable Loan Solution™ mortgage, which requires a down payment as low as 3 percent, speaks directly to the needs of first-time buyers who are striving to overcome the down payment hurdle. Additionally, our Down Payment Resource Center is an online tool that helps consumers search a variety of down payment and closing cost assistance programs.We’re encouraged to see homeowners continuing to find the deep benefits – both financial and emotional – of homeownership. We hope that this report gives both prospective homebuyers and existing homeowners insights that will allow them to take advantage of everything that owning a home can offer.

09 May, 2017

WITH
HOMEOWNERS TRAPPED BY HIGH TAXES, CRTS MAKE A COMEBACK IN PALO ALTO.

For longtime Palo Alto
homeowners, soaring home prices have been an unexpected windfall, a bonus on
top of good schools, plentiful jobs and a close-knit community. But for some,
high real estate prices are a mixed blessing: they may want to downsize to a
smaller place or sell to provide for their retirement or pay for relatives’
education. Now they face a huge tax bill, in the form of capital gains.

So it’s no surprise then that
more Palo Altans are turning to charitable remainder trusts (CRT) to make
selling their home less financially painful.

“For eight years, I didn’t see
any of these at all. It’s picked back up again,” says David Spence, a partner
at the Menlo Park law firm Royse Law. Spence says high real estate values, the
booming Silicon Valley economy and higher tax rates have been behind the flurry
of inquiries he’s received in recent years.

Area charities are also
aggressively courting charitable giving while recognizing that the potential
donor’s largest asset may come with a huge tax liability. Both Stanford and the
Silicon Valley Community Foundation, for example, boast on their websites of
their ability to act as trustees for a CRT.

DODGING TAXES, WITH THE
IRS’S BLESSING

CRTs were not uncommon in the
red-hot economy of the 1990s but tailed off through much of the first decade of
this century, perhaps due to favorable changes to the tax code in 1997 but Palo
Alto’s booming prices mean many potential sellers will today easily top the
$500,000 per couple exclusion.

The trusts work like this: A
person who wishes to sell their appreciated home instead transfers it into an
irrevocable trust, which sells the asset without having to pay the capital
gains tax. The trust then pays the donor (“grantor” in legalese) a portion of
the trust’s assets annually. The payment stream can be a fixed dollar amount or
percentage of the trust’s assets and for a fixed number of years or for life.
What’s left over at the end of the trust’s life, the “remainder,” goes to the
charity. The donor must pay taxes on the income stream but gets to deduct the
remainder gift immediately.

Margo Felt of the Los Altos law
firm Thoits Law says some clients cite tax planning, not charity, for creating
a charitable trust. “Some people can end up better off having income come out
of the charitable trust.”

Spence recently worked with a
retiree who had few assets aside from her home and used a CRT to pay for her
retirement while giving back to the community.

CAVEATS: BE FREE OF DEBT,
BE READY TO MOVE

As
with anything tax-related, these trusts come in multiple flavors and the tax
benefits can vary dramatically based on circumstances so working with a
qualified attorney or estate planner is a must. The property should generally
be free of debt, although Spence says that there are instances where he has
worked out an agreement to split a property into separate pieces with one
placed in the trust and the other, to which the debt is attached, left
outside.

“That is a solution that can
sometimes be done depending on the bank, but it’s not easy,” Spence says. “The
general rule is that you’ve got to get rid of the debt before you create the
trust.”

Spence also says that homeowners
should not have made a commitment to sell their property and should be out of
their house prior to its being placed in trust. “If the owner is living in the
house [after it is in the trust], that is private inurement,” Spence says. That
is, “they benefit by living in the house,” he says.

Beyond that, for anyone sitting
on a home that is worth 25 times what they paid for it, not uncommon in Silicon
Valley, and who wants income for their later years a CRT may allow them to
sell.

14 April, 2017

Last week a
court denied the California Apartment Association's (CAA) request for a
preliminary injunction in its case against the City of Mountain View to block
the implementation of Measure V. Measure V is the city's voter approved rent
control and just cause eviction ordinance. A different court recently denied
the same motion in CAA's fight to block a similar initiative in the city of
Richmond.

CAA had asked
the court to prevent the implementation of the ordinance until resolution of
the lawsuit which is scheduled for trial later this year. The court found that
CAA was unable to prove its members would suffer irreparable harm if Measure V
went into effect prior to the resolution of the litigation over Measure V.

This decision
now paves the way for full implementation of rent control and just cause eviction
in Mountain View, which goes into effect immediately. Measure V applies to
buildings with three or more units with different regulations based on whether
it was built before or after February 1, 1995. Under state law rent control can
only apply to buildings built before that date.

10 January, 2017

The 2016 local
real estate market remained strong as a result of tight supply and high
demand. Multiple offers were the norm. The share of international buyers
dropped to 3% in California, the lowest level in 9 years.

Continued
improvement in the employment market, solid income gains and competition for
a limited number of homes pushed prices higher

in most cities
in the local market.

Summary of
Market Forecast for 2017:

·US economy and job growth expanding

·CA economy out-performing the nation

·Strong 2017 housing market with little risk of a
major downturn

·Slowing price and sales growth in 2017

·Rates rising in response to Fed policy but remaining
attractive

·Millennials leaving the nest as job opportunities
expand

·Listings remaining low

·Affordability challenges for first time & repeat
buyers

·Boomers staying put

·International buyers dropping (China announced a new
policy effective January 1, 2017)

·CA Jobs growing faster than nation with CA
unemployment near an 8-year low

·Consumer confidence at a 9 year high and spending is
robust

·Lack of affordability will remain the main challenge

·Migration patterns mirror housing affordability and
jobs

·The economy will keep going – longest business cycle
in history

·A trend toward government deregulation

·Wild Card: policies of President-elect Donald Trump

The
fundamentals for the 2017 housing market remain strong but it will be a year
of slowing and moderate growth, set against the backdrop of a changing
composition of home buyers and a post-election interest rate jump that could
potentially price some first-timers out of the market. Interest rates are
expected to reach 4.5 percent due to higher expectations for inflationary
pressure in the year ahead with unemployment expected to decline to 4.7
percent nationwide by the end of the year. Despite a more moderate housing
market overall in 2017, strong local economies and population growth will
continue to fuel the market.

New-home
buyers could face increased building costs if President-elect Trump follows
through on his tougher immigration policies, which may worsen the
construction industry labor shortage. With the expected continuing increase
in interest rates, first time buyers will face new hurdles as they navigate
the qualification and buying process. These higher rates are associated with
anticipation of stronger economic and wage growth next year, both of which
favor buyers. However, higher rates will make qualifying for a mortgage and finding
affordable inventory more challenging.

This year’s
housing indicators don’t take one major wild card into account:
President-elect Donald Trump. Tax cuts and increased infrastructure spending
would stimulate economic growth, which is good for housing. But a trade war
with China and an ideological confrontation with California could hurt our
economy.

A new housing
crisis may worsen under the Trump administration, according to some housing
economists. Trump backs the Republican Party stance to change the structure
of or completely eliminate the Consumer Financial Protection Bureau that was
created by the Dodd-Frank Act to oversee Federal financial laws. Trump
believes that the lack of mortgage credit availability is due to
excessively strict criteria and unless you have a lot of money in the bank,
you can’t borrow.

This would
boost mortgage lending in the short term, and give more people the
opportunity for home ownership, a pillar of the American dream. However, it
could have ugly effects down the road. The higher demand for homes would push
up house prices, and pretty soon the next generation would find themselves
struggling to qualify for sufficient mortgage finance and as we learned just
a few years’ ago, loosening lending standards can lead to dangerous housing
and credit bubbles.

Abundance of
Uncertainty

·Brexit: Limited direct impact on US.

·Unexpected rise in interest rates

·Hit to equities

·Global instability

Supply Remains an
Issue

Long-time homeowners
are not moving as in the past. Some of the reasons are listed below:

·Low rate on current mortgage, low property taxes

·Capital gains hit

·Replacement housing may be unaffordable

·May not qualify for a mortgage today

·Elect to remodel and stay - children to inherit the
home of their parents?

Boomers not moving as often: 71% of Californian’s aged
55+ haven’t moved since 1999 and the majority do not plan to sell
home when they retire

·92% have equity in their home

Miscellaneous
Facts:

·52% of parents worry about children having
fewer opportunities to succeed

·75% plan or have already helped children with
down payment.

·Only 31% of households can buy a median priced home
in California

·Millennials: The American dream is still important.
Many millennials also believe buying a home is a safe investment

·Nearly half of all renters plan to buy a home. 69%
of millennial renters would look into purchasing if knew about lower
down-payments

·The number of years a homeowner owns before selling
is up to 10 years from 6-7 years in the past

2016 Housing
Statistics:

The number of houses
sold annually was higher in Palo Alto for 2016 and lower for Menlo Park and
Atherton. 371 houses sold in Palo Alto (compared to 326 in 2015), 296 houses
sold in Menlo Park (compared to 315 in 2015) and 70 houses sold in Atherton
(compared to 76 in 2015).

As of December 31,
2016 we had only 11 active listings of single family homes in Palo Alto, 12
in Menlo Park and 9 in Atherton.

100 townhouses and
condos sold in in Palo Alto in 2016 with a median price of $1,505,000
compared to $1,462,000 last year, an increase of 3%. 74 townhouses and condo
sold in Menlo Park with the median price declining 9.4% from $1,400,000 in 2015
to 1,267,500 in 2016

The median sale price
for a single family home in Palo Alto decreased 4.3% to $2,555,000 (compared
to $2,670,000 for last year), the first decrease since 2010. The sale to list
price ratio was 104% and average days on the market was 23 days, an increase
from 18 for 2015.

For Menlo Park the
median sale price increased 4.9 % from $2,030,000 to $2,130,000 in 2016. The
sale to list price ratio was 103.9% and average days on the market was 19
days, the same as last year.

For Atherton the
median sale price increased 0.84% from $5,950,000 to $6,000,000. The sale to
list price ratio was 97.7% and average days on the market was 73 days, up
from 52 days for last year. The highest sale on MLS in Atherton was 246
Atherton Avenue, which sold at $33,350,000. It is important to note that
Atherton continues to have more private sales than any other town in the
area.

Outlook:

Predicting how the real estate market will behave is
never an exact science and 2017 could be especially difficult to predict.

I think at this point it will be a very interesting
year as we see what policies President-elect Trump will put into place.

Trump appears to be trying to create a new spirit for
business so that even small businesses might stand a chance in 2017 and beyond.
This could help more people feel confident about buying a home, or investing
regardless of the prices. However, planned repatriation of business back to the
US may come with a big price — a high dollar and strong inflation.

Top Factors That Will Affect The Housing Market In 2017

Increasing interest rates and changing buyer demographics are
setting the stage for five key housing trends:

1.Millennials
and boomers will dominate the market––
Next year, the housing market will be in the middle of two massive demographic
waves, millennials and baby boomers, that will power demand for at least the next 10 years.

More
millennials will become homeowners, driving up the home ownership rate. Millennials
are also more racially diverse, so more homeowners will be people of color,
reflecting the changing demographics of the United States. Millennials are
expected to make up about a third of the buyer pool.

In the last several years
baby boomers' participation in the housing market has dwindled, although that may be starting to change as the oldest baby
boomers are entering their late 60s. While a sizable number want to
downsize to control expenses, we're seeing others move to the biggest house
they've ever owned because they've got children and grandchildren and they want
them to come visit.

2. Fewer
homes on the market and fast moving markets – Inventory is currently down The
conditions that are limiting home supply are not expected to change in 2017. For those considering new construction
in 2017, it’s worth considering the added cost that may come amidst ongoing
construction labor shortages that could get worse if President-elect Trump
follows through on his hardline stances on immigration and immigrant labor.

The percentage of people who drive to work will rise as
homeowners move further into the suburbs seeking affordable housing.

3. Interest
rates:A
30-year fixed rate mortgage averaged 4.32% for the week ending December 29, up
from 4.01% a year earlier. Mortgage rates forecast to stay low and could reach
4.5% in 2017. With Trump in power, lending requirements are expected to be
eased.

4. Home prices rising:

Low inventories and modest economic growth should push up price
growth next year. If economic indicators are any guide, the housing
market is heading for a fifth straight year of rising home prices, increased
sales, more rent hikes and booming home construction.

4.Impact of Chinese buyers on the local market

China’s
foreign exchange regulator announced a new policy effective January 1, 2017
that affects all individuals who are looking to buy overseas real estate China’s capital controls are becoming stricter.

·Citizens
will now have to fill out an application form stating the purpose of their
foreign purchase. The purpose cannot be real estate investment, but it
can be done for purposes such as travel, education and so on.

·Prepare
for a longer time to close deals with Chinese buyers.

·Chinese
investors continue to find ways around the controls.

·I
expect that the average purchase price for
Chinese buyers will decrease in the next few years.
More middle income class Mainland Chinese are looking to invest in overseas
properties, and more second tiers cities are being targeted due to budget and
capital controls.

The real estate market goes through
cycles. Buyers who try to wait for prices to bottom before buying may miss
the opportunity to buy. My recommendation therefore is to think strategically
about when you want to buy and what kind of house you would like to buy and
decide the risks that you are willing to take. If you find the right house
for you, you may want to buy it now rather than wait for a market adjustment.

For sellers, the market appears to have
reached a peak and prices have stabilized or are on the way down for some
cities. Therefore it is a good time to sell before prices go further down and
interest rates go higher and before the fundamentals in the economy change.

*Please share my semi-annual report with your friends
who might be looking to buy or sell their home. As always thank you for your
support, I appreciate any referrals
you send my way. I will be happy to answer any questions or discuss in
further detail the state of the real estate market.

15 December, 2016

There comes a time in the lives of many seniors when staying in their current home is no longer a safe or wise choice. But the decision to move is often delayed—or avoided altogether—because of the myriad of emotions and amount of work surrounding the transition.

This is a difficult decision to make and can lead to decision-making paralysis that may have negative impacts on a senior's life.

For many seniors, just the thought of selling stirs up fear and anxiety about leaving their home, neighborhood, and friendships for unfamiliar territory—so much so that they often convince themselves a move isn’t necessary.

A rational assessment and careful discussion of their current living arrangement and the alternatives living options that are available may help determine if it is the time to downsize.

In addition there are many resources that are aimed at seniors that cover financial, legal, healthcare, and other services. These resources guide seniors through the decision-making process.

Sometimes getting the adult children involved in the process can alleviate a senior’s anxiety and make the process less overwhelming.

Ask yourself these questions that will help you better assess your situation and guide you through the decision-making process:

• Does your home provide the best environment for the physical needs you have?

• Have you isolated yourself from friends and family because your inability to maintain your home has left it in disrepair?

• Have you had trouble finding workers to take care of maintenance?

• Are finances keeping you from enjoying the home you’ve loved for so many years?

• Do you feel you have inadequate security and access to care where you are?

If you can answer yes to more than one of these questions, you are a candidate for change.

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About Me

I have been a real estate
broker since 1994, serving the communities of Palo Alto, Menlo Park, Atherton,
Woodside and Los Altos. Having lived in the community for over twenty years, I
am intimately acquainted and professionally engaged with the area I serve -
from neighborhoods, schools, parks and activities to local building codes and
regulations governing historic properties and tree preservation.

I take pride in providing unsurpassed
personalized service, with dedication and discretion to my clients to help them
achieve their objectives when selling or buying a home. I listen carefully and
get to know you and understand your needs and goals. Drawing on my in-depth
knowledge of the market, I work with you to achieve your goals faster and
easier.

Selling and buying a home is a complex
transaction that requires attention to detail and careful execution. My
experience, resources and the strategy that I fostered through the years in the
real estate industry provide me the knowledge and expertise that you need
throughout the entire s process to sell your home at the highest price possible.
I stay on top of every aspect of the transaction – so that you don’t have to!

My unwavering commitment to achieving my
client’s goals is the motivating force behind my work. I use the latest
innovations and marketing techniques to achieve a positive and successful
experience.

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Testimonials

We are grateful that you have handled our real estate transactions; it is comfortable to know that everything will be handled with much attention to details and professionalism. We appreciate your work and look forward to working with you again! Nicole T.

I am really, really happy with how the sale process has gone. If you had told me a month ago that we'd have a sale contract in hand at the price our home sold at, I would not have believed it. Thanks for all the hard work that you have put on our behalf. Pat F.

We appreciate all of your help this year so, so much. We could not be happier with the way everything has turned out and we are so pleased that our old house sold so quickly without having to do all the necessary work to list it on MLS.